Oracle Japan : Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 2022

Oracle Corporation Japan (4716) Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 2022 (Non-consolidated)

This flash report is unaudited and the translation of the Japanese language version.

Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 2022

[under Japanese GAAP] (Non-consolidated)

September 21, 2021

Company Name

Oracle Corporation Japan

Listed Stock Exchange: TSE 1st Section

Ticker: 4716

URL:

http://www.oracle.com/jp/corporate/investor-relations/index.html

Representative & Contact personal

Telephone: [phone]

Representative personal

Hiroko Utsumi, Representative Corporate Executive Officer & Managing Counsel

Contact personal

Yuki Nishio, Director, Investor Relations

Quarterly Report Filing Date (as planned): October 11, 2021

Schedule for dividends payment: -

Preparation of supplementary materials on quarterly financial results: Yes

Holding of quarterly financial results conference: Yes (for analysts and institutional investors)

(Amount of less than ¥1 million are rounded down)

1. Financial results for this term (from June 1, 2021 to August 31, 2021)

(1) Operating result

(% of change from previous year)

Revenue

Operating Income

Ordinary Income

Net Income

Million Yen

％

Million Yen

％

Million Yen

％

Million Yen

％

1st Quarter, May 2022

50,388

5.8

16,945

16.6

16,981

17.1

11,767

17.2

1st Quarter, May 2021

47,629

0.3

14,536

2.0

14,500

2.2

10,040

2.3

Net income per share

Net income per share

(diluted)

Yen

Sen

Yen

Sen

1st Quarter, May 2022

91

91

91

87

1st Quarter, May 2021

78

40

78

32

1. Financial Position

	Total Assets	Net Assets	Ratio of shareholders'
	equity
	Million Yen	Million Yen	%
1st Quarter, May 2022	187,874	84,840	45.1
FY ended May 2021	333,999	219,999	65.8

Shareholders' equity 1st Quarter, May 2022: 84,723 Million Yen (May 2021: 219,881 Million Yen)

2. Dividends

Dividend per share

1st Quarter

2nd Quarter

3rd Quarter

Fiscal Year

Total

end

end

end

End

Yen

Sen

Yen

Sen

Yen

Sen

Yen

Sen

Yen

Sen

FY ended May 2021

-

0

00

-

1,146

00

1,146

00

FY ending May 2022

-

FY ending May 2022(Forecast)

-

-

-

-

(Note1) Revision of outlook for dividends in this quarter: No

(Note2) Year-end dividend for this fiscal year has yet to be determined.

3. Forecast for the May 2022 term (from June 1, 2021 to May 31, 2022)

(% of change from previous year)

		Revenue	Net income
		per share
		%	Yen
Entire term	1.0~4.0	385.00~395.00
(Note1)	Revision of forecast for May 2022 term in this quarter: No
(Note2)	Company uses ranges of values for the forecast. Please refer to 1. Qualitative Information on Results in the Quarter under
	Review, (3) Qualitative Information on Forecasts, on page 5.
(Note3)	Estimation of effective tax rate is 30.8%

Oracle Corporation Japan (4716) Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 2022 (Non-consolidated)

4. Other information

1. Adoption of specified accounting methods for the preparation of quarterly non-consolidated financial statements: Yes
2. Changes in accounting policies, procedures, presentation rules, etc

1. Changes in accounting policies due to revision of accounting standards : Yes
2. Changes in accounting policies due to reasons other than (i): None
3. Changes in accounting estimates : None
4. Restatements : None

1. The number of shares outstanding (common stock)

1. The number of shares outstanding (inclusive of treasury stock)
2. The number of treasury stock
3. The number of average shares outstanding (cumulative, non-consolidated, at end of third quarter)

1st Quarter, May 2022	128,247,871	shares
FY ended May 2021	128,240,971	shares
1st Quarter, May 2022	201,981	shares
FY ended May 2021	201,781	shares
1st Quarter, May 2022	128,041,489	shares
1st Quarter, May 2021	128,076,021	shares

(Note) The Company's stock held by Board Incentive Plan Trust and Employee Stock Ownership Plan Trust is included in the number of treasury stock.

The treasury shares which remain in the BIP trust and the ESOP trust are included in the treasury stock to be deducted in the calculation of the number of average shares outstanding during the term.

Caution1:

These quarterly financial statements are outside the scope of quarterly review procedures.

Caution2:

Above forecast is based on the information available at a time of issuance of this report, and the actual result may change by various reasons. Please refer to Qualitative information on Forecasts, on page 5.

Oracle Corporation Japan (4716) Flash Report for the 3rd Quarter of Fiscal Year Ending May 31, 2021 (Non-consolidated)
[Table of Contents of Attached Material]
1. Qualitative Information on Results in the Quarter under Review---------------------------------------------	2
(1)	Qualitative Information on Business Outcomes ------------------------------------------------------------	2
(2)	Qualitative Information on Financial Situation-------------------------------------------------------------	5
(3)	Qualitative Information on Forecasts-------------------------------------------------------------------------	5
2. Quarterly Financial Statements and Main Notes ----------------------------------------------------------------	6
(1)	Quarterly Balance Sheet---------------------------------------------------------------------------------------	6
(2)	Quarterly Statement of Income--------------------------------------------------------------------------------	7
(3)	Notes to Quarterly Financial Statements---------------------------------------------------------------------	8
	Notes to Going Concern----------------------------------------------------------------------------------------	8
	Notes to significant changes in the stockholders' equity--------------------------------------------------	8
	Adoption of specified accounting methods for the preparation of quarterly non-consolidated
		8
	Financial statements -------------------------------------------------------------------------------------------
	Changes in Accounting Policies ------------------------------------------------------------------------------	8
	Additional Information ----------------------------------------------------------------------------------------	8
	Application of Accounting Standard, etc. for Revenue Recognition ------------------------------------	8
	Segment Information ------------------------------------------------------------------------------------------	9

1

Oracle Corporation Japan (4716) Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 2022 (Non-consolidated)

1. Qualitative Information on Results in the Quarter under Review

1. Qualitative Information on Business Outcomes

Overview

During the first quarter under review (from June 1, 2021 to August 31, 2021, hereinafter "this quarter"), the Japanese information services industry in which the Company operates were gradually recovering in migrating to the Cloud and IT investment aimed at corporate growth and boosting competitiveness, including investing in new technologies exemplified by Autonomous, AI, Machine learning or Deep leaning technology, improving efficiency through the use of variable digital data, soaring data volume because of remote working, and strengthening contact points with end users.

In this business environment, the Company is expanding our Cloud business for realizing Customers' innovation, for their business transformation, and for supporting their firm growth.

As the COVID-19 virus (Coronavirus) was showing up in early 2020, the Company recognizes that one of its most important business missions is to protect safety and health of its employees' and customers' and to continue its business stably. The Company has shifted promptly to remote working style and pressed ahead with efforts to ensure efficient risk management and to strengthen our sales capabilities continuously.

As a result of these measures, the Company posted 50,388 million yen (up 5.8 % year on year) in revenue, 16,945 million yen (rising 16.6 %) in operating income, 16,981 million yen (gaining 17.1 %) in ordinary income and 11,767 million yen (increasing 17.2 %) in net income.

The Company is delivering our value to strive further business growth by achieving customer's innovation and supporting their business transformation by utilizing cloud service and data.

For revenue and each profit category indicated attained hit record high as this quarter (three months ended).

Go to Market Strategy

Our mission is to help people see data in new ways, discover insights, unlock endless possibilities. The Company is aiming for further business growth by supporting our customers' cloud migration of their core systems and active data utilization with deepen customer-trust, which is based on "Be a TRUSTED TECHNOLOGY ADVISOR". We have practiced DX (Digital Transformation) with our Cloud Journey to the Cloud by own technology which brought business success to ourselves. By accelerating to deploy and implement our technology to the customers, we support their Cloud Journey to Data-driven DX.

The Company has the comprehensive product portfolio which consists of platform, applications, hardware which can be deployed on cloud environment and on-premise environment. Especially our software license products have been widely adopted in the field of mission critical systems, which have demanded high security, availability and high performance for many years. The Oracle Cloud, which the Company has focused on as a pillar of its new business, has been developed based on the same system architecture and technologies as these software licenses, and the Company enjoys a strength in enabling coordination and bidirectional migration between on-premises systems built with the software licenses products and the Oracle Cloud.

The Company is further accelerate to provide its Cloud services, which maximize the value of information by data-driven approaching and supporting services for customers to utilize our Cloud Services that we have been focusing on, hereby the Company drives its customers' DX.

The four measures which make "To Accelerate Cloud Transformation" 1) Realization of data-driven DX by SaaS

We promote aggressively DX by deploying and implementing Oracle Cloud ERP / HCM, / CX to our customers, which focuses on large-scale and strategic transactions.

2) Modernization of IT infrastructure with Hybrid Cloud

We move large-scale workloads of mission-critical systems to OCI (Oracle Cloud Infrastructure) and focus on increasing the number of cloud engineers.

3) Promotion of Social infrastructure DX

We strengthen the sales team of the public sector that has led to promote DX of social infrastructure, and support the Smart city projects of local governments.

4) Expansion of partner ecosystem

We support the buildup OCI / SaaS delivery system by deploying "Dedicated Region Cloud @Customer", which builds Oracle's public cloud in the customer's data center to strategic partners.

2

Oracle Corporation Japan (4716) Flash Report for the 1st Quarter of Fiscal Year Ending May 31, 2022 (Non-consolidated)

In the role of promoting strategy, the Company is expanding the capacity of two datacenters in Tokyo and Osaka region so that it has built Disaster Recovery service system and has delivered its cloud services corresponding to enterprise workload and security.

In terms of the structure of sales team, it deployed into Cloud and License, and newly built the sales team for specialized the public sector. We expand our cloud business by "Team Collaboration", add value sales with our support and consulting services.

(Glossary)

• Cloud service: Providing software and hardware resources which are used for IT system infrastructure at companies and other organizations as services under agreements for certain periods through the networks such as Internets.
• On-premises:A form of IT system developed and operated as the company's possession.

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